Asian stock markets moved notably higher on Thursday, with Japan outperforming the region after markets reopened following an extended holiday. The move higher in risk assets coincided with overnight U.S. strength and reports that the U.S. and Iran are close to a deal that would end the war.
In Tokyo, the Nikkei 225 surged nearly 6% to reach a record 62,958.0 points, while the broader TOPIX index climbed 3.4%. Japanese trading reflected catch-up activity with peers in the region after a long holiday period, and was further supported by strong gains in technology names.
Chipmakers and chip-adjacent stocks rallied in step with global semiconductor peers, buoyed in part by blockbuster earnings from AMD. Tech conglomerate SoftBank Group Corp. (TYO:9984) led notable moves in Tokyo, rallying by more than 16%.
Market participants also factored in a reported pause by U.S. President Donald Trump of an operation to escort ships through the Strait of Hormuz, an action that followed reports of progress toward a U.S.-Iran settlement. In Asian trading, S&P 500 futures were steady, reflecting calm in U.S.-linked futures markets.
Currency moves did not prevent the Japan advance. The yen has strengthened sharply over the past week amid reports of foreign exchange intervention by Tokyo, yet Japanese equities still rose markedly.
Elsewhere in the region, equity performance was mixed but generally positive. South Korea’s KOSPI eased 0.2% on Thursday after a run of record highs driven by chipmakers; Year-to-date, the index has delivered an exceptional 71% gain, marking it as the best-performing Asian index so far this year.
Other major markets advanced. Australia’s S&P/ASX 200 gained 0.8% despite data showing an unexpected trade deficit in March. China’s Shanghai Shenzhen CSI 300 and the Shanghai Composite each rose about 0.2%, while Hong Kong’s Hang Seng jumped 1.5% on strength in technology shares.
Regional relief came from a drop in oil prices, which eased some of the pressure on markets sensitive to energy costs. Reports also noted that the U.S. and China are considering adding artificial intelligence to the agenda for an upcoming summit between Presidents Donald Trump and Xi Jinping in Beijing later this month.
Southeast Asian and South Asian markets showed varied moves: Singapore’s Straits Times index rose 0.3%, while futures for India’s Nifty 50 were down roughly 0.5% in early trade.
The market reaction on Thursday reflected a combination of geopolitical de-escalation hopes, strong corporate earnings in the semiconductor sector, and easing commodity pressure from lower oil prices. While the optimism was widespread, some markets and sectors showed more restraint, reflecting both recent gains and localized economic data such as Australia’s surprise trade deficit.
Investors will be watching developments around the reported U.S.-Iran talks, U.S. political decisions related to operations in the Gulf, and upcoming corporate results in key technology and chipmaking companies for further cues on market direction.